KUALA LUMPUR – Putrajaya has ended the 15-year port dredging and reclamation concession with Integrated Marine Works Sdn Bhd (IMW) effective June 11, after the company failed to remedy a breach of contract.
Transport Minister Anthony Loke said IMW had three months, between January 29 and April 29, to address the change in shareholding without government approval, and defaulting on its 2023 concession charges.
“IMW has changed its shareholders without government approval during the concession period. Previously, IMW was wholly-owned by Inai Kiara Sdn Bhd. In July 2023, the Transport Ministry found Inai Kiara was ordered to wind up by the Shah Alam High Court on April 11.
“Based on investigation, the ministry found that IMW shares were transferred from Inai Kiara to Inai Warisan without approval. Based on the concession agreement, the company cannot change its shareholders without government approval,” he said in a statement today.
The company also defaulted on concession charges for 2023 but the amount was not revealed by the ministry.
Loke said the ministry will not appoint a new concessionaire following this termination.
“A new policy will be drawn up to facilitate the growth of the port dredging and reclamation industry among local companies. Most of the dredging and reclamation projects in federal ports are financed by the respective port operators.”
The concessionaire between Putrajaya and IMW was signed on December 21, 2004 for a 15-year period.
With this, IMW had exclusive rights to carry out port dredging and reclamation works for all 11 federal ports, including Bintulu, Klang, Penang, Tg Pelepas, Pasir Gudang and Kuantan.
However, the 2018 Pakatan Harapan (PH) government did not want to extend the concessions when it ended on December 20, 2019.
Following the collapse of the PH government, the Perikatan Nasional administration on July 7, 2021 reappointed IMW for another 15 years concession that would end in 2036.
It was reported last month that IMW was in financial trouble when Maybank appointed a company to recoup owed monies on behalf of the bank. – June 13, 2024